98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5583

 

Introduced , by Rep. Michael Unes

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 120/2-5
625 ILCS 5/3-1001  from Ch. 95 1/2, par. 3-1001

    Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the motor vehicle privilege tax provisions of the Illinois Vehicle Code. Exempts from these taxes motor vehicles sold to an Illinois resident who is a service member on active duty or returning to Illinois from active duty and who applies for registration in Illinois while on active duty or within one year after leaving active duty.


LRB098 17590 HLH 52700 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5583LRB098 17590 HLH 52700 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23    (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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1replacement parts for the machinery and equipment, including
2machinery and equipment purchased for lease, and including
3implements of husbandry defined in Section 1-130 of the
4Illinois Vehicle Code, farm machinery and agricultural
5chemical and fertilizer spreaders, and nurse wagons required to
6be registered under Section 3-809 of the Illinois Vehicle Code,
7but excluding other motor vehicles required to be registered
8under the Illinois Vehicle Code. Horticultural polyhouses or
9hoop houses used for propagating, growing, or overwintering
10plants shall be considered farm machinery and equipment under
11this item (11). Agricultural chemical tender tanks and dry
12boxes shall include units sold separately from a motor vehicle
13required to be licensed and units sold mounted on a motor
14vehicle required to be licensed if the selling price of the
15tender is separately stated.
16    Farm machinery and equipment shall include precision
17farming equipment that is installed or purchased to be
18installed on farm machinery and equipment including, but not
19limited to, tractors, harvesters, sprayers, planters, seeders,
20or spreaders. Precision farming equipment includes, but is not
21limited to, soil testing sensors, computers, monitors,
22software, global positioning and mapping systems, and other
23such equipment.
24    Farm machinery and equipment also includes computers,
25sensors, software, and related equipment used primarily in the
26computer-assisted operation of production agriculture

 

 

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6    (12) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the conduct
9of its business as an air common carrier, for a flight destined
10for or returning from a location or locations outside the
11United States without regard to previous or subsequent domestic
12stopovers.
13    Beginning July 1, 2013, fuel and petroleum products sold to
14or used by an air carrier, certified by the carrier to be used
15for consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports at
19least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23    (13) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages purchased at retail from a retailer, to the
26extent that the proceeds of the service charge are in fact

 

 

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1turned over as tips or as a substitute for tips to the
2employees who participate directly in preparing, serving,
3hosting or cleaning up the food or beverage function with
4respect to which the service charge is imposed.
5    (14) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of rigs,
7rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
8tubular goods, including casing and drill strings, (iii) pumps
9and pump-jack units, (iv) storage tanks and flow lines, (v) any
10individual replacement part for oil field exploration,
11drilling, and production equipment, and (vi) machinery and
12equipment purchased for lease; but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code.
14    (15) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including that
16manufactured on special order, certified by the purchaser to be
17used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19    (16) Coal and aggregate exploration, mining, off-highway
20offhighway hauling, processing, maintenance, and reclamation
21equipment, including replacement parts and equipment, and
22including equipment purchased for lease, but excluding motor
23vehicles required to be registered under the Illinois Vehicle
24Code. The changes made to this Section by Public Act 97-767
25apply on and after July 1, 2003, but no claim for credit or
26refund is allowed on or after August 16, 2013 (the effective

 

 

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1date of Public Act 98-456) this amendatory Act of the 98th
2General Assembly for such taxes paid during the period
3beginning July 1, 2003 and ending on August 16, 2013 (the
4effective date of Public Act 98-456) this amendatory Act of the
598th General Assembly.
6    (17) Until July 1, 2003, distillation machinery and
7equipment, sold as a unit or kit, assembled or installed by the
8retailer, certified by the user to be used only for the
9production of ethyl alcohol that will be used for consumption
10as motor fuel or as a component of motor fuel for the personal
11use of the user, and not subject to sale or resale.
12    (18) Manufacturing and assembling machinery and equipment
13used primarily in the process of manufacturing or assembling
14tangible personal property for wholesale or retail sale or
15lease, whether that sale or lease is made directly by the
16manufacturer or by some other person, whether the materials
17used in the process are owned by the manufacturer or some other
18person, or whether that sale or lease is made apart from or as
19an incident to the seller's engaging in the service occupation
20of producing machines, tools, dies, jigs, patterns, gauges, or
21other similar items of no commercial value on special order for
22a particular purchaser. The exemption provided by this
23paragraph (18) does not include machinery and equipment used in
24(i) the generation of electricity for wholesale or retail sale;
25(ii) the generation or treatment of natural or artificial gas
26for wholesale or retail sale that is delivered to customers

 

 

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1through pipes, pipelines, or mains; or (iii) the treatment of
2water for wholesale or retail sale that is delivered to
3customers through pipes, pipelines, or mains. The provisions of
4Public Act 98-583 this amendatory Act of the 98th General
5Assembly are declaratory of existing law as to the meaning and
6scope of this exemption.
7    (19) Personal property delivered to a purchaser or
8purchaser's donee inside Illinois when the purchase order for
9that personal property was received by a florist located
10outside Illinois who has a florist located inside Illinois
11deliver the personal property.
12    (20) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (21) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (21) is exempt from the provisions
20of Section 3-90, and the exemption provided for under this item
21(21) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after January 1,
232008 for such taxes paid during the period beginning May 30,
242000 and ending on January 1, 2008.
25    (22) Computers and communications equipment utilized for
26any hospital purpose and equipment used in the diagnosis,

 

 

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1analysis, or treatment of hospital patients purchased by a
2lessor who leases the equipment, under a lease of one year or
3longer executed or in effect at the time the lessor would
4otherwise be subject to the tax imposed by this Act, to a
5hospital that has been issued an active tax exemption
6identification number by the Department under Section 1g of the
7Retailers' Occupation Tax Act. If the equipment is leased in a
8manner that does not qualify for this exemption or is used in
9any other non-exempt manner, the lessor shall be liable for the
10tax imposed under this Act or the Service Use Tax Act, as the
11case may be, based on the fair market value of the property at
12the time the non-qualifying use occurs. No lessor shall collect
13or attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Service Use Tax Act, as the case may be, if the tax
16has not been paid by the lessor. If a lessor improperly
17collects any such amount from the lessee, the lessee shall have
18a legal right to claim a refund of that amount from the lessor.
19If, however, that amount is not refunded to the lessee for any
20reason, the lessor is liable to pay that amount to the
21Department.
22    (23) Personal property purchased by a lessor who leases the
23property, under a lease of one year or longer executed or in
24effect at the time the lessor would otherwise be subject to the
25tax imposed by this Act, to a governmental body that has been
26issued an active sales tax exemption identification number by

 

 

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1the Department under Section 1g of the Retailers' Occupation
2Tax Act. If the property is leased in a manner that does not
3qualify for this exemption or used in any other non-exempt
4manner, the lessor shall be liable for the tax imposed under
5this Act or the Service Use Tax Act, as the case may be, based
6on the fair market value of the property at the time the
7non-qualifying use occurs. No lessor shall collect or attempt
8to collect an amount (however designated) that purports to
9reimburse that lessor for the tax imposed by this Act or the
10Service Use Tax Act, as the case may be, if the tax has not been
11paid by the lessor. If a lessor improperly collects any such
12amount from the lessee, the lessee shall have a legal right to
13claim a refund of that amount from the lessor. If, however,
14that amount is not refunded to the lessee for any reason, the
15lessor is liable to pay that amount to the Department.
16    (24) Beginning with taxable years ending on or after
17December 31, 1995 and ending with taxable years ending on or
18before December 31, 2004, personal property that is donated for
19disaster relief to be used in a State or federally declared
20disaster area in Illinois or bordering Illinois by a
21manufacturer or retailer that is registered in this State to a
22corporation, society, association, foundation, or institution
23that has been issued a sales tax exemption identification
24number by the Department that assists victims of the disaster
25who reside within the declared disaster area.
26    (25) Beginning with taxable years ending on or after

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in the
3performance of infrastructure repairs in this State, including
4but not limited to municipal roads and streets, access roads,
5bridges, sidewalks, waste disposal systems, water and sewer
6line extensions, water distribution and purification
7facilities, storm water drainage and retention facilities, and
8sewage treatment facilities, resulting from a State or
9federally declared disaster in Illinois or bordering Illinois
10when such repairs are initiated on facilities located in the
11declared disaster area within 6 months after the disaster.
12    (26) Beginning July 1, 1999, game or game birds purchased
13at a "game breeding and hunting preserve area" as that term is
14used in the Wildlife Code. This paragraph is exempt from the
15provisions of Section 3-90.
16    (27) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

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1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (28) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-90.
22    (29) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

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1for machines used in commercial, coin-operated amusement and
2vending business if a use or occupation tax is paid on the
3gross receipts derived from the use of the commercial,
4coin-operated amusement and vending machines. This paragraph
5is exempt from the provisions of Section 3-90.
6    (30) Beginning January 1, 2001 and through June 30, 2016,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages, soft
9drinks, and food that has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the ID/DD Community Care Act or the Specialized Mental
18Health Rehabilitation Act of 2013.
19    (31) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, computers and communications
21equipment utilized for any hospital purpose and equipment used
22in the diagnosis, analysis, or treatment of hospital patients
23purchased by a lessor who leases the equipment, under a lease
24of one year or longer executed or in effect at the time the
25lessor would otherwise be subject to the tax imposed by this
26Act, to a hospital that has been issued an active tax exemption

 

 

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1identification number by the Department under Section 1g of the
2Retailers' Occupation Tax Act. If the equipment is leased in a
3manner that does not qualify for this exemption or is used in
4any other nonexempt manner, the lessor shall be liable for the
5tax imposed under this Act or the Service Use Tax Act, as the
6case may be, based on the fair market value of the property at
7the time the nonqualifying use occurs. No lessor shall collect
8or attempt to collect an amount (however designated) that
9purports to reimburse that lessor for the tax imposed by this
10Act or the Service Use Tax Act, as the case may be, if the tax
11has not been paid by the lessor. If a lessor improperly
12collects any such amount from the lessee, the lessee shall have
13a legal right to claim a refund of that amount from the lessor.
14If, however, that amount is not refunded to the lessee for any
15reason, the lessor is liable to pay that amount to the
16Department. This paragraph is exempt from the provisions of
17Section 3-90.
18    (32) Beginning on the effective date of this amendatory Act
19of the 92nd General Assembly, personal property purchased by a
20lessor who leases the property, under a lease of one year or
21longer executed or in effect at the time the lessor would
22otherwise be subject to the tax imposed by this Act, to a
23governmental body that has been issued an active sales tax
24exemption identification number by the Department under
25Section 1g of the Retailers' Occupation Tax Act. If the
26property is leased in a manner that does not qualify for this

 

 

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1exemption or used in any other nonexempt manner, the lessor
2shall be liable for the tax imposed under this Act or the
3Service Use Tax Act, as the case may be, based on the fair
4market value of the property at the time the nonqualifying use
5occurs. No lessor shall collect or attempt to collect an amount
6(however designated) that purports to reimburse that lessor for
7the tax imposed by this Act or the Service Use Tax Act, as the
8case may be, if the tax has not been paid by the lessor. If a
9lessor improperly collects any such amount from the lessee, the
10lessee shall have a legal right to claim a refund of that
11amount from the lessor. If, however, that amount is not
12refunded to the lessee for any reason, the lessor is liable to
13pay that amount to the Department. This paragraph is exempt
14from the provisions of Section 3-90.
15    (33) On and after July 1, 2003 and through June 30, 2004,
16the use in this State of motor vehicles of the second division
17with a gross vehicle weight in excess of 8,000 pounds and that
18are subject to the commercial distribution fee imposed under
19Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
201, 2004 and through June 30, 2005, the use in this State of
21motor vehicles of the second division: (i) with a gross vehicle
22weight rating in excess of 8,000 pounds; (ii) that are subject
23to the commercial distribution fee imposed under Section
243-815.1 of the Illinois Vehicle Code; and (iii) that are
25primarily used for commercial purposes. Through June 30, 2005,
26this exemption applies to repair and replacement parts added

 

 

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1after the initial purchase of such a motor vehicle if that
2motor vehicle is used in a manner that would qualify for the
3rolling stock exemption otherwise provided for in this Act. For
4purposes of this paragraph, the term "used for commercial
5purposes" means the transportation of persons or property in
6furtherance of any commercial or industrial enterprise,
7whether for-hire or not.
8    (34) Beginning January 1, 2008, tangible personal property
9used in the construction or maintenance of a community water
10supply, as defined under Section 3.145 of the Environmental
11Protection Act, that is operated by a not-for-profit
12corporation that holds a valid water supply permit issued under
13Title IV of the Environmental Protection Act. This paragraph is
14exempt from the provisions of Section 3-90.
15    (35) Beginning January 1, 2010, materials, parts,
16equipment, components, and furnishings incorporated into or
17upon an aircraft as part of the modification, refurbishment,
18completion, replacement, repair, or maintenance of the
19aircraft. This exemption includes consumable supplies used in
20the modification, refurbishment, completion, replacement,
21repair, and maintenance of aircraft, but excludes any
22materials, parts, equipment, components, and consumable
23supplies used in the modification, replacement, repair, and
24maintenance of aircraft engines or power plants, whether such
25engines or power plants are installed or uninstalled upon any
26such aircraft. "Consumable supplies" include, but are not

 

 

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1limited to, adhesive, tape, sandpaper, general purpose
2lubricants, cleaning solution, latex gloves, and protective
3films. This exemption applies only to the use of qualifying
4tangible personal property by persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations. The exemption does not include aircraft operated
11by a commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part 129
13of the Federal Aviation Regulations. The changes made to this
14paragraph (35) by Public Act 98-534 this amendatory Act of the
1598th General Assembly are declarative of existing law.
16    (36) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

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1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 3-90.
4    (37) A motor vehicle sold to an Illinois resident who is a
5service member on active duty or returning to Illinois from
6active duty and who applies for registration of the motor
7vehicle in Illinois while on active duty or within one year
8after leaving active duty. For purposes of this exemption:
9"active duty" means active duty pursuant to an executive order
10of the President of the United States, an act of the Congress
11of the United States, or an order of the Governor; and "service
12member" means a member of the armed services or reserve forces
13of the United States or a member of the Illinois National
14Guard.
15(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431,
16eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104,
17eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13;
1898-534, eff. 8-23-13; 98-574, eff. 1-1-14; 98-583, eff. 1-1-14;
19revised 9-9-13.)
 
20    Section 10. The Retailers' Occupation Tax Act is amended by
21changing Section 2-5 as follows:
 
22    (35 ILCS 120/2-5)
23    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
24sale of the following tangible personal property are exempt

 

 

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1from the tax imposed by this Act:
2    (1) Farm chemicals.
3    (2) Farm machinery and equipment, both new and used,
4including that manufactured on special order, certified by the
5purchaser to be used primarily for production agriculture or
6State or federal agricultural programs, including individual
7replacement parts for the machinery and equipment, including
8machinery and equipment purchased for lease, and including
9implements of husbandry defined in Section 1-130 of the
10Illinois Vehicle Code, farm machinery and agricultural
11chemical and fertilizer spreaders, and nurse wagons required to
12be registered under Section 3-809 of the Illinois Vehicle Code,
13but excluding other motor vehicles required to be registered
14under the Illinois Vehicle Code. Horticultural polyhouses or
15hoop houses used for propagating, growing, or overwintering
16plants shall be considered farm machinery and equipment under
17this item (2). Agricultural chemical tender tanks and dry boxes
18shall include units sold separately from a motor vehicle
19required to be licensed and units sold mounted on a motor
20vehicle required to be licensed, if the selling price of the
21tender is separately stated.
22    Farm machinery and equipment shall include precision
23farming equipment that is installed or purchased to be
24installed on farm machinery and equipment including, but not
25limited to, tractors, harvesters, sprayers, planters, seeders,
26or spreaders. Precision farming equipment includes, but is not

 

 

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1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4    Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (2) is exempt from the
11provisions of Section 2-70.
12    (3) Until July 1, 2003, distillation machinery and
13equipment, sold as a unit or kit, assembled or installed by the
14retailer, certified by the user to be used only for the
15production of ethyl alcohol that will be used for consumption
16as motor fuel or as a component of motor fuel for the personal
17use of the user, and not subject to sale or resale.
18    (4) Until July 1, 2003 and beginning again September 1,
192004 through August 30, 2014, graphic arts machinery and
20equipment, including repair and replacement parts, both new and
21used, and including that manufactured on special order or
22purchased for lease, certified by the purchaser to be used
23primarily for graphic arts production. Equipment includes
24chemicals or chemicals acting as catalysts but only if the
25chemicals or chemicals acting as catalysts effect a direct and
26immediate change upon a graphic arts product.

 

 

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1    (5) A motor vehicle that is used for automobile renting, as
2defined in the Automobile Renting Occupation and Use Tax Act.
3This paragraph is exempt from the provisions of Section 2-70.
4    (6) Personal property sold by a teacher-sponsored student
5organization affiliated with an elementary or secondary school
6located in Illinois.
7    (7) Until July 1, 2003, proceeds of that portion of the
8selling price of a passenger car the sale of which is subject
9to the Replacement Vehicle Tax.
10    (8) Personal property sold to an Illinois county fair
11association for use in conducting, operating, or promoting the
12county fair.
13    (9) Personal property sold to a not-for-profit arts or
14cultural organization that establishes, by proof required by
15the Department by rule, that it has received an exemption under
16Section 501(c)(3) of the Internal Revenue Code and that is
17organized and operated primarily for the presentation or
18support of arts or cultural programming, activities, or
19services. These organizations include, but are not limited to,
20music and dramatic arts organizations such as symphony
21orchestras and theatrical groups, arts and cultural service
22organizations, local arts councils, visual arts organizations,
23and media arts organizations. On and after the effective date
24of this amendatory Act of the 92nd General Assembly, however,
25an entity otherwise eligible for this exemption shall not make
26tax-free purchases unless it has an active identification

 

 

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1number issued by the Department.
2    (10) Personal property sold by a corporation, society,
3association, foundation, institution, or organization, other
4than a limited liability company, that is organized and
5operated as a not-for-profit service enterprise for the benefit
6of persons 65 years of age or older if the personal property
7was not purchased by the enterprise for the purpose of resale
8by the enterprise.
9    (11) Personal property sold to a governmental body, to a
10corporation, society, association, foundation, or institution
11organized and operated exclusively for charitable, religious,
12or educational purposes, or to a not-for-profit corporation,
13society, association, foundation, institution, or organization
14that has no compensated officers or employees and that is
15organized and operated primarily for the recreation of persons
1655 years of age or older. A limited liability company may
17qualify for the exemption under this paragraph only if the
18limited liability company is organized and operated
19exclusively for educational purposes. On and after July 1,
201987, however, no entity otherwise eligible for this exemption
21shall make tax-free purchases unless it has an active
22identification number issued by the Department.
23    (12) Tangible personal property sold to interstate
24carriers for hire for use as rolling stock moving in interstate
25commerce or to lessors under leases of one year or longer
26executed or in effect at the time of purchase by interstate

 

 

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1carriers for hire for use as rolling stock moving in interstate
2commerce and equipment operated by a telecommunications
3provider, licensed as a common carrier by the Federal
4Communications Commission, which is permanently installed in
5or affixed to aircraft moving in interstate commerce.
6    (12-5) On and after July 1, 2003 and through June 30, 2004,
7motor vehicles of the second division with a gross vehicle
8weight in excess of 8,000 pounds that are subject to the
9commercial distribution fee imposed under Section 3-815.1 of
10the Illinois Vehicle Code. Beginning on July 1, 2004 and
11through June 30, 2005, the use in this State of motor vehicles
12of the second division: (i) with a gross vehicle weight rating
13in excess of 8,000 pounds; (ii) that are subject to the
14commercial distribution fee imposed under Section 3-815.1 of
15the Illinois Vehicle Code; and (iii) that are primarily used
16for commercial purposes. Through June 30, 2005, this exemption
17applies to repair and replacement parts added after the initial
18purchase of such a motor vehicle if that motor vehicle is used
19in a manner that would qualify for the rolling stock exemption
20otherwise provided for in this Act. For purposes of this
21paragraph, "used for commercial purposes" means the
22transportation of persons or property in furtherance of any
23commercial or industrial enterprise whether for-hire or not.
24    (13) Proceeds from sales to owners, lessors, or shippers of
25tangible personal property that is utilized by interstate
26carriers for hire for use as rolling stock moving in interstate

 

 

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1commerce and equipment operated by a telecommunications
2provider, licensed as a common carrier by the Federal
3Communications Commission, which is permanently installed in
4or affixed to aircraft moving in interstate commerce.
5    (14) Machinery and equipment that will be used by the
6purchaser, or a lessee of the purchaser, primarily in the
7process of manufacturing or assembling tangible personal
8property for wholesale or retail sale or lease, whether the
9sale or lease is made directly by the manufacturer or by some
10other person, whether the materials used in the process are
11owned by the manufacturer or some other person, or whether the
12sale or lease is made apart from or as an incident to the
13seller's engaging in the service occupation of producing
14machines, tools, dies, jigs, patterns, gauges, or other similar
15items of no commercial value on special order for a particular
16purchaser. The exemption provided by this paragraph (14) does
17not include machinery and equipment used in (i) the generation
18of electricity for wholesale or retail sale; (ii) the
19generation or treatment of natural or artificial gas for
20wholesale or retail sale that is delivered to customers through
21pipes, pipelines, or mains; or (iii) the treatment of water for
22wholesale or retail sale that is delivered to customers through
23pipes, pipelines, or mains. The provisions of Public Act 98-583
24this amendatory Act of the 98th General Assembly are
25declaratory of existing law as to the meaning and scope of this
26exemption.

 

 

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1    (15) Proceeds of mandatory service charges separately
2stated on customers' bills for purchase and consumption of food
3and beverages, to the extent that the proceeds of the service
4charge are in fact turned over as tips or as a substitute for
5tips to the employees who participate directly in preparing,
6serving, hosting or cleaning up the food or beverage function
7with respect to which the service charge is imposed.
8    (16) Petroleum products sold to a purchaser if the seller
9is prohibited by federal law from charging tax to the
10purchaser.
11    (17) Tangible personal property sold to a common carrier by
12rail or motor that receives the physical possession of the
13property in Illinois and that transports the property, or
14shares with another common carrier in the transportation of the
15property, out of Illinois on a standard uniform bill of lading
16showing the seller of the property as the shipper or consignor
17of the property to a destination outside Illinois, for use
18outside Illinois.
19    (18) Legal tender, currency, medallions, or gold or silver
20coinage issued by the State of Illinois, the government of the
21United States of America, or the government of any foreign
22country, and bullion.
23    (19) Until July 1 2003, oil field exploration, drilling,
24and production equipment, including (i) rigs and parts of rigs,
25rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
26tubular goods, including casing and drill strings, (iii) pumps

 

 

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1and pump-jack units, (iv) storage tanks and flow lines, (v) any
2individual replacement part for oil field exploration,
3drilling, and production equipment, and (vi) machinery and
4equipment purchased for lease; but excluding motor vehicles
5required to be registered under the Illinois Vehicle Code.
6    (20) Photoprocessing machinery and equipment, including
7repair and replacement parts, both new and used, including that
8manufactured on special order, certified by the purchaser to be
9used primarily for photoprocessing, and including
10photoprocessing machinery and equipment purchased for lease.
11    (21) Coal and aggregate exploration, mining, off-highway
12offhighway hauling, processing, maintenance, and reclamation
13equipment, including replacement parts and equipment, and
14including equipment purchased for lease, but excluding motor
15vehicles required to be registered under the Illinois Vehicle
16Code. The changes made to this Section by Public Act 97-767
17apply on and after July 1, 2003, but no claim for credit or
18refund is allowed on or after August 16, 2013 (the effective
19date of Public Act 98-456) this amendatory Act of the 98th
20General Assembly for such taxes paid during the period
21beginning July 1, 2003 and ending on August 16, 2013 (the
22effective date of Public Act 98-456) this amendatory Act of the
2398th General Assembly.
24    (22) Until June 30, 2013, fuel and petroleum products sold
25to or used by an air carrier, certified by the carrier to be
26used for consumption, shipment, or storage in the conduct of

 

 

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1its business as an air common carrier, for a flight destined
2for or returning from a location or locations outside the
3United States without regard to previous or subsequent domestic
4stopovers.
5    Beginning July 1, 2013, fuel and petroleum products sold to
6or used by an air carrier, certified by the carrier to be used
7for consumption, shipment, or storage in the conduct of its
8business as an air common carrier, for a flight that (i) is
9engaged in foreign trade or is engaged in trade between the
10United States and any of its possessions and (ii) transports at
11least one individual or package for hire from the city of
12origination to the city of final destination on the same
13aircraft, without regard to a change in the flight number of
14that aircraft.
15    (23) A transaction in which the purchase order is received
16by a florist who is located outside Illinois, but who has a
17florist located in Illinois deliver the property to the
18purchaser or the purchaser's donee in Illinois.
19    (24) Fuel consumed or used in the operation of ships,
20barges, or vessels that are used primarily in or for the
21transportation of property or the conveyance of persons for
22hire on rivers bordering on this State if the fuel is delivered
23by the seller to the purchaser's barge, ship, or vessel while
24it is afloat upon that bordering river.
25    (25) Except as provided in item (25-5) of this Section, a
26motor vehicle sold in this State to a nonresident even though

 

 

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1the motor vehicle is delivered to the nonresident in this
2State, if the motor vehicle is not to be titled in this State,
3and if a drive-away permit is issued to the motor vehicle as
4provided in Section 3-603 of the Illinois Vehicle Code or if
5the nonresident purchaser has vehicle registration plates to
6transfer to the motor vehicle upon returning to his or her home
7state. The issuance of the drive-away permit or having the
8out-of-state registration plates to be transferred is prima
9facie evidence that the motor vehicle will not be titled in
10this State.
11    (25-5) The exemption under item (25) does not apply if the
12state in which the motor vehicle will be titled does not allow
13a reciprocal exemption for a motor vehicle sold and delivered
14in that state to an Illinois resident but titled in Illinois.
15The tax collected under this Act on the sale of a motor vehicle
16in this State to a resident of another state that does not
17allow a reciprocal exemption shall be imposed at a rate equal
18to the state's rate of tax on taxable property in the state in
19which the purchaser is a resident, except that the tax shall
20not exceed the tax that would otherwise be imposed under this
21Act. At the time of the sale, the purchaser shall execute a
22statement, signed under penalty of perjury, of his or her
23intent to title the vehicle in the state in which the purchaser
24is a resident within 30 days after the sale and of the fact of
25the payment to the State of Illinois of tax in an amount
26equivalent to the state's rate of tax on taxable property in

 

 

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1his or her state of residence and shall submit the statement to
2the appropriate tax collection agency in his or her state of
3residence. In addition, the retailer must retain a signed copy
4of the statement in his or her records. Nothing in this item
5shall be construed to require the removal of the vehicle from
6this state following the filing of an intent to title the
7vehicle in the purchaser's state of residence if the purchaser
8titles the vehicle in his or her state of residence within 30
9days after the date of sale. The tax collected under this Act
10in accordance with this item (25-5) shall be proportionately
11distributed as if the tax were collected at the 6.25% general
12rate imposed under this Act.
13    (25-7) Beginning on July 1, 2007, no tax is imposed under
14this Act on the sale of an aircraft, as defined in Section 3 of
15the Illinois Aeronautics Act, if all of the following
16conditions are met:
17        (1) the aircraft leaves this State within 15 days after
18    the later of either the issuance of the final billing for
19    the sale of the aircraft, or the authorized approval for
20    return to service, completion of the maintenance record
21    entry, and completion of the test flight and ground test
22    for inspection, as required by 14 C.F.R. 91.407;
23        (2) the aircraft is not based or registered in this
24    State after the sale of the aircraft; and
25        (3) the seller retains in his or her books and records
26    and provides to the Department a signed and dated

 

 

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1    certification from the purchaser, on a form prescribed by
2    the Department, certifying that the requirements of this
3    item (25-7) are met. The certificate must also include the
4    name and address of the purchaser, the address of the
5    location where the aircraft is to be titled or registered,
6    the address of the primary physical location of the
7    aircraft, and other information that the Department may
8    reasonably require.
9    For purposes of this item (25-7):
10    "Based in this State" means hangared, stored, or otherwise
11used, excluding post-sale customizations as defined in this
12Section, for 10 or more days in each 12-month period
13immediately following the date of the sale of the aircraft.
14    "Registered in this State" means an aircraft registered
15with the Department of Transportation, Aeronautics Division,
16or titled or registered with the Federal Aviation
17Administration to an address located in this State.
18    This paragraph (25-7) is exempt from the provisions of
19Section 2-70.
20    (26) Semen used for artificial insemination of livestock
21for direct agricultural production.
22    (27) Horses, or interests in horses, registered with and
23meeting the requirements of any of the Arabian Horse Club
24Registry of America, Appaloosa Horse Club, American Quarter
25Horse Association, United States Trotting Association, or
26Jockey Club, as appropriate, used for purposes of breeding or

 

 

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1racing for prizes. This item (27) is exempt from the provisions
2of Section 2-70, and the exemption provided for under this item
3(27) applies for all periods beginning May 30, 1995, but no
4claim for credit or refund is allowed on or after January 1,
52008 (the effective date of Public Act 95-88) for such taxes
6paid during the period beginning May 30, 2000 and ending on
7January 1, 2008 (the effective date of Public Act 95-88).
8    (28) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients sold to a lessor
11who leases the equipment, under a lease of one year or longer
12executed or in effect at the time of the purchase, to a
13hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of
15this Act.
16    (29) Personal property sold to a lessor who leases the
17property, under a lease of one year or longer executed or in
18effect at the time of the purchase, to a governmental body that
19has been issued an active tax exemption identification number
20by the Department under Section 1g of this Act.
21    (30) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is donated for
24disaster relief to be used in a State or federally declared
25disaster area in Illinois or bordering Illinois by a
26manufacturer or retailer that is registered in this State to a

 

 

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1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (31) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in the
8performance of infrastructure repairs in this State, including
9but not limited to municipal roads and streets, access roads,
10bridges, sidewalks, waste disposal systems, water and sewer
11line extensions, water distribution and purification
12facilities, storm water drainage and retention facilities, and
13sewage treatment facilities, resulting from a State or
14federally declared disaster in Illinois or bordering Illinois
15when such repairs are initiated on facilities located in the
16declared disaster area within 6 months after the disaster.
17    (32) Beginning July 1, 1999, game or game birds sold at a
18"game breeding and hunting preserve area" as that term is used
19in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 2-70.
21    (33) A motor vehicle, as that term is defined in Section
221-146 of the Illinois Vehicle Code, that is donated to a
23corporation, limited liability company, society, association,
24foundation, or institution that is determined by the Department
25to be organized and operated exclusively for educational
26purposes. For purposes of this exemption, "a corporation,

 

 

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1limited liability company, society, association, foundation,
2or institution organized and operated exclusively for
3educational purposes" means all tax-supported public schools,
4private schools that offer systematic instruction in useful
5branches of learning by methods common to public schools and
6that compare favorably in their scope and intensity with the
7course of study presented in tax-supported schools, and
8vocational or technical schools or institutes organized and
9operated exclusively to provide a course of study of not less
10than 6 weeks duration and designed to prepare individuals to
11follow a trade or to pursue a manual, technical, mechanical,
12industrial, business, or commercial occupation.
13    (34) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 2-70.

 

 

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1    (35) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and other
4items, and replacement parts for these machines. Beginning
5January 1, 2002 and through June 30, 2003, machines and parts
6for machines used in commercial, coin-operated amusement and
7vending business if a use or occupation tax is paid on the
8gross receipts derived from the use of the commercial,
9coin-operated amusement and vending machines. This paragraph
10is exempt from the provisions of Section 2-70.
11    (35-5) Beginning August 23, 2001 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages, soft
14drinks, and food that has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or a licensed facility as defined in
22the ID/DD Community Care Act or the Specialized Mental Health
23Rehabilitation Act of 2013.
24    (36) Beginning August 2, 2001, computers and
25communications equipment utilized for any hospital purpose and
26equipment used in the diagnosis, analysis, or treatment of

 

 

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1hospital patients sold to a lessor who leases the equipment,
2under a lease of one year or longer executed or in effect at
3the time of the purchase, to a hospital that has been issued an
4active tax exemption identification number by the Department
5under Section 1g of this Act. This paragraph is exempt from the
6provisions of Section 2-70.
7    (37) Beginning August 2, 2001, personal property sold to a
8lessor who leases the property, under a lease of one year or
9longer executed or in effect at the time of the purchase, to a
10governmental body that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12this Act. This paragraph is exempt from the provisions of
13Section 2-70.
14    (38) Beginning on January 1, 2002 and through June 30,
152016, tangible personal property purchased from an Illinois
16retailer by a taxpayer engaged in centralized purchasing
17activities in Illinois who will, upon receipt of the property
18in Illinois, temporarily store the property in Illinois (i) for
19the purpose of subsequently transporting it outside this State
20for use or consumption thereafter solely outside this State or
21(ii) for the purpose of being processed, fabricated, or
22manufactured into, attached to, or incorporated into other
23tangible personal property to be transported outside this State
24and thereafter used or consumed solely outside this State. The
25Director of Revenue shall, pursuant to rules adopted in
26accordance with the Illinois Administrative Procedure Act,

 

 

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1issue a permit to any taxpayer in good standing with the
2Department who is eligible for the exemption under this
3paragraph (38). The permit issued under this paragraph (38)
4shall authorize the holder, to the extent and in the manner
5specified in the rules adopted under this Act, to purchase
6tangible personal property from a retailer exempt from the
7taxes imposed by this Act. Taxpayers shall maintain all
8necessary books and records to substantiate the use and
9consumption of all such tangible personal property outside of
10the State of Illinois.
11    (39) Beginning January 1, 2008, tangible personal property
12used in the construction or maintenance of a community water
13supply, as defined under Section 3.145 of the Environmental
14Protection Act, that is operated by a not-for-profit
15corporation that holds a valid water supply permit issued under
16Title IV of the Environmental Protection Act. This paragraph is
17exempt from the provisions of Section 2-70.
18    (40) Beginning January 1, 2010, materials, parts,
19equipment, components, and furnishings incorporated into or
20upon an aircraft as part of the modification, refurbishment,
21completion, replacement, repair, or maintenance of the
22aircraft. This exemption includes consumable supplies used in
23the modification, refurbishment, completion, replacement,
24repair, and maintenance of aircraft, but excludes any
25materials, parts, equipment, components, and consumable
26supplies used in the modification, replacement, repair, and

 

 

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1maintenance of aircraft engines or power plants, whether such
2engines or power plants are installed or uninstalled upon any
3such aircraft. "Consumable supplies" include, but are not
4limited to, adhesive, tape, sandpaper, general purpose
5lubricants, cleaning solution, latex gloves, and protective
6films. This exemption applies only to the sale of qualifying
7tangible personal property to persons who modify, refurbish,
8complete, replace, or maintain an aircraft and who (i) hold an
9Air Agency Certificate and are empowered to operate an approved
10repair station by the Federal Aviation Administration, (ii)
11have a Class IV Rating, and (iii) conduct operations in
12accordance with Part 145 of the Federal Aviation Regulations.
13The exemption does not include aircraft operated by a
14commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part 129
16of the Federal Aviation Regulations. The changes made to this
17paragraph (40) by Public Act 98-534 this amendatory Act of the
1898th General Assembly are declarative of existing law.
19    (41) Tangible personal property sold to a
20public-facilities corporation, as described in Section
2111-65-10 of the Illinois Municipal Code, for purposes of
22constructing or furnishing a municipal convention hall, but
23only if the legal title to the municipal convention hall is
24transferred to the municipality without any further
25consideration by or on behalf of the municipality at the time
26of the completion of the municipal convention hall or upon the

 

 

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1retirement or redemption of any bonds or other debt instruments
2issued by the public-facilities corporation in connection with
3the development of the municipal convention hall. This
4exemption includes existing public-facilities corporations as
5provided in Section 11-65-25 of the Illinois Municipal Code.
6This paragraph is exempt from the provisions of Section 2-70.
7    (42) A motor vehicle sold to an Illinois resident who is a
8service member on active duty or returning to Illinois from
9active duty and who applies for registration of the motor
10vehicle in Illinois while on active duty or within one year
11after leaving active duty. For purposes of this exemption:
12"active duty" means active duty pursuant to an executive order
13of the President of the United States, an act of the Congress
14of the United States, or an order of the Governor; and "service
15member" means a member of the armed services or reserve forces
16of the United States or a member of the Illinois National
17Guard.
18(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
19eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
20eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2198-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
221-1-14; 98-583, eff. 1-1-14; revised 9-9-13.)
 
23    Section 15. The Illinois Vehicle Code is amended by
24changing Section 3-1001 as follows:
 

 

 

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1    (625 ILCS 5/3-1001)  (from Ch. 95 1/2, par. 3-1001)
2    Sec. 3-1001. A tax is hereby imposed on the privilege of
3using, in this State, any motor vehicle as defined in Section
41-146 of this Code acquired by gift, transfer, or purchase, and
5having a year model designation preceding the year of
6application for title by 5 or fewer years prior to October 1,
71985 and 10 or fewer years on and after October 1, 1985 and
8prior to January 1, 1988. On and after January 1, 1988, the tax
9shall apply to all motor vehicles without regard to model year.
10Except that the tax shall not apply
11        (i) if the use of the motor vehicle is otherwise taxed
12    under the Use Tax Act;
13        (ii) if the motor vehicle is bought and used by a
14    governmental agency or a society, association, foundation
15    or institution organized and operated exclusively for
16    charitable, religious or educational purposes;
17        (iii) if the use of the motor vehicle is not subject to
18    the Use Tax Act by reason of subsection (a), (b), (c), (d),
19    (e) or (f) of Section 3-55 of that Act dealing with the
20    prevention of actual or likely multistate taxation;
21        (iv) to implements of husbandry;
22        (v) when a junking certificate is issued pursuant to
23    Section 3-117(a) of this Code;
24        (vi) when a vehicle is subject to the replacement
25    vehicle tax imposed by Section 3-2001 of this Act;
26        (vii) when the transfer is a gift to a beneficiary in

 

 

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1    the administration of an estate and the beneficiary is a
2    surviving spouse.
3    The tax shall also not apply to a motor vehicle sold to an
4Illinois resident who is a service member on active duty or
5returning to Illinois from active duty and who applies for
6registration of the motor vehicle in Illinois while on active
7duty or within one year after leaving active duty. For purposes
8of this exemption: "active duty" means active duty pursuant to
9an executive order of the President of the United States, an
10act of the Congress of the United States, or an order of the
11Governor; and "service member" means a member of the armed
12services or reserve forces of the United States or a member of
13the Illinois National Guard.
14    Prior to January 1, 1988, the rate of tax shall be 5% of
15the selling price for each purchase of a motor vehicle covered
16by Section 3-1001 of this Code. Except as hereinafter provided,
17beginning January 1, 1988, the rate of tax shall be as follows
18for transactions in which the selling price of the motor
19vehicle is less than $15,000:
20Number of Years Transpired AfterApplicable Tax
21Model Year of Motor Vehicle
221 or less$390
232290
243215
254165
265115

 

 

HB5583- 41 -LRB098 17590 HLH 52700 b

1690
2780
3865
4950
51040
6over 1025
7Except as hereinafter provided, beginning January 1, 1988, the
8rate of tax shall be as follows for transactions in which the
9selling price of the motor vehicle is $15,000 or more:
10Selling PriceApplicable Tax
11$15,000 - $19,999$ 750
12$20,000 - $24,999$1,000
13$25,000 - $29,999$1,250
14$30,000 and over$1,500
15For the following transactions, the tax rate shall be $15 for
16each motor vehicle acquired in such transaction:
17        (i) when the transferee or purchaser is the spouse,
18    mother, father, brother, sister or child of the transferor;
19        (ii) when the transfer is a gift to a beneficiary in
20    the administration of an estate and the beneficiary is not
21    a surviving spouse;
22        (iii) when a motor vehicle which has once been
23    subjected to the Illinois retailers' occupation tax or use
24    tax is transferred in connection with the organization,
25    reorganization, dissolution or partial liquidation of an
26    incorporated or unincorporated business wherein the

 

 

HB5583- 42 -LRB098 17590 HLH 52700 b

1    beneficial ownership is not changed.
2    A claim that the transaction is taxable under subparagraph
3(i) shall be supported by such proof of family relationship as
4provided by rules of the Department.
5    For a transaction in which a motorcycle, motor driven cycle
6or moped is acquired the tax rate shall be $25.
7    On and after October 1, 1985, 1/12 of $5,000,000 of the
8moneys received by the Department of Revenue pursuant to this
9Section shall be paid each month into the Build Illinois Fund
10and the remainder into the General Revenue Fund.
11    The tax imposed by this Section shall be abated and no
12longer imposed when the amount deposited to secure the bonds
13issued pursuant to the Build Illinois Bond Act is sufficient to
14provide for the payment of the principal of, and interest and
15premium, if any, on the bonds, as certified to the State
16Comptroller and the Director of Revenue by the Director of the
17Governor's Office of Management and Budget.
18(Source: P.A. 96-554, eff. 1-1-10.)